Two hospital emergency departments will share overhead costs of $4000 created as a cost pool combining costs of the maintenance and housekeeping departments. The cost driver selected is square footage. Emergency department A has 10,000 square feet, and Emergency department B has 30,000 square feet. How much of the pool will be allocated to Emergency department A?

Answer rating: 100% (QA)

1 The square footage as cost driver for housekeeping costs can be effective cost driver for distribu... View the full answer